Brent. July 03, 2020 – Potential for rising oil prices is almost exhausted
Oil prices on Friday continue to trade above $42 per barrel. The current Brent quote is $42.60. Support for the asset this week was provided by data from the American Petroleum Institute (API) and the US Department of Energy on crude oil reserves in the country, reflecting a decrease in reserves of 8.1 million and 7.1 million barrels, respectively.
However, despite a local recovery, Brent quotes may go down already in the near future amid a general deterioration in market sentiment due to the aggravation of the epidemiological situation in the world, which poses a threat to global hydrocarbon consumption.
Additional pressure may come from comments by Russian Energy Minister Alexander Novak that he hopes to achieve a balance or deficit in the global oil market in July. Market participants saw in these comments a hint of Russia's unwillingness to participate in the further extension of the OPEC ++ energy deal. Thus, in the short term, oil prices may begin to decline to the area of $42 per barrel or lower.
Oil prices on Friday continue to trade above $42 per barrel. The current Brent quote is $42.60. Support for the asset this week was provided by data from the American Petroleum Institute (API) and the US Department of Energy on crude oil reserves in the country, reflecting a decrease in reserves of 8.1 million and 7.1 million barrels, respectively.
However, despite a local recovery, Brent quotes may go down already in the near future amid a general deterioration in market sentiment due to the aggravation of the epidemiological situation in the world, which poses a threat to global hydrocarbon consumption.
Additional pressure may come from comments by Russian Energy Minister Alexander Novak that he hopes to achieve a balance or deficit in the global oil market in July. Market participants saw in these comments a hint of Russia's unwillingness to participate in the further extension of the OPEC ++ energy deal. Thus, in the short term, oil prices may begin to decline to the area of $42 per barrel or lower.